TPG Plans Yuan-Based Shanghai Fund

(Reuters) – TPG Capital, one of the world’s biggest private equity firms, said on Monday that it aims to raise 5 billion yuan ($736.4 million) in its first yuan-denominated fund in Shanghai.

The fund, developed with the support of the local government, will focus on making onshore investments to support medium- and large-sized Chinese firms, particularly those in the financial services, consumer, retail, healthcare and other modern services industries, it said in a statement.

TPG and other global buyout firms such as Carlyle Group [CYL.UL] and the Blackstone Group (BX.N) are racing to launch yuan-based funds in an effort to carry out deals more quickly and easily in China, where it is difficult to obtain approval for major foreign investments.

The Carlyle Group said last month that it had received 2.4 billion yuan in commitments for its Beijing-based yuan-denominated fund, and would begin making investments in large growth companies.

TPG, whose unit Newbridge has exited its successful investment in Shenzhen Development Bank (000001.SZ), saw opportunities in China’s clean tech sector and financial restructuring, and would accelerate its localisation in the country, managing director Marry Ma told Reuters in June.

($1=6.79 Yuan) (Reporting by Samuel Shen and Jacqueline Wong)